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  1. 1. ASK YOURSELF Do I have enough for retirement? Am I paying more taxes? Am I working on a budget? How can I repay my loans? How will I pay for my child’s  Need to keep track of education? your recurring How to investment in a investments? fluctuating market?  Need to know what When can I retire? percentage of your total How can I achieve my financial assets are devoted to goals? retirement? Is my portfolio diverse enough?  Want an idea of your Am I saving enough? monthly cash flow? IITE 2011-12 CE Dept / Sem VII / 2 PROJECT/08/CE/028 170001
  2. 2. Do You Have Time To Plan? Its easy enough to estimate how much you have to put aside in your savings account every month in order to spend your next vacation in Vegas. But try to work out the long- term goals that will bear fruit ten years from now. Education, mortgages, automobile loans, retirement -- all these have to be planned well in advance. Creating wealth is not a rocket science. All it requires is discipline and direction. For the most of us, accounting jargon is like a foreign language. so how do you accomplish these goals without hiring an expert? All of above questions can be answerd by Accumulus Financial Planner . In fact, it’s just for you! IITE 2011-12 CE Dept / Sem VII / 3 PROJECT/08/CE/028 170001
  3. 3. Guided By:-Internal Guide:- Prepared By:-Prof. Roshni Patel Harsh Darji (08BCER007)External Guide:- Jinal DhruvMr. Shishir Mishra (08BCER012) . .
  4. 4. “..Becoming wealthy is not a matter ofhow much you earn, who your parentsare, or what you do.. It is a matter ofmanaging your money properly..” - Noel Whittaker IITE 2011-12 CE Dept / Sem VII / 5 PROJECT/08/CE/028 170001
  5. 5. Overview• Introduction • Factors Affecting• Why Financial Planner? Financial Planner• Hi-5 Of Financial Planner • The CRUX• Objectives • Detailed Description• Process • Scope For Everybody• Step By Step • Future Work• Is It Upto Your Expectation? • Conclusion IITE 2011-12 CE Dept / Sem VII / PROJECT/08/CE/028 170001 6
  6. 6. IntroductionWikipedia Says..“A financial planner or personalfinancial planner is a practicing professional whohelps people deal with various personal financialissues through proper planning, which includes but isnot limited to these major areas: cash flowmanagement, education planning, retirementplanning, investment planning, risk management andinsurance planning, tax planning, estate planning andbusiness succession planning (for business owners)..” IITE 2011-12 CE Dept / Sem VII / PROJECT/08/CE/028 170001 7
  7. 7. Introduction Task of Determining How to achieve strategic goals and objectives. Describes each of tha activities, resources, equipment and materials that are needed to achieve these objectives, as well as the timeframes involved. Accumulus Financial Planner is a small, fast and inexpensive application which helps you manage your incomes, investments, assets, liabilities, net worth, cash flow, and so much more all in one easy-to-use interface. IITE 2011-12 CE Dept / Sem VII / PROJECT/08/CE/028 170001 8
  8. 8. IntroductionWe Says..“Financial Planning is deciding a road mapfor you self and deciding in advance how will youinvest your money which helps you achieve yourFinancial Goals in life comfortably . Financial Planingwill give you a Path on which you just have to walkovertime , because you have decided and plannedeverything in advance . Financial Planning is aboutConsistency , Its about having a vision , Its aboutpromise to yourself that you will follow the plan withdiscipline . Its not about getting 30% or 40% , itsabout getting X% which will help you achieve yourgoals easy enough without compromising andexposing you to unnecessary risk..” IITE 2011-12 CE Dept / Sem VII / PROJECT/08/CE/028 170001 9
  9. 9. Why Financial Planning? Inflation Changing Life Stage Future cost of Life Style Needs important goals Vacation, Gizmos, would be much Car, House,higher than present Children… Financial Planning Traditional Lack of planning investment not as is the biggest cause attractive of financial stress
  10. 10. Hi-5 of Financial Planner1. Analytical: A good financial planner needs to be able tolook under the hood and understand the many factors thatmake up an individuals financial life.2. Communication: They must be able to describeproblems, approaches, and solutions in a way that non-financial people can understand.3. Empathy: Money can be one of the most emotional topicsfor anyone to talk about. Quality financial plannersappreciate this and can take into account the powerfulfeelings that accompany financial decisions. IITE 2011-12 CE Dept / Sem VII / PROJECT/08/CE/028 170001 11
  11. 11. Hi-5 of Financial Planner4. Focus: Financial planners have to be able to developclear, solid plans for the future. Its not a time for wanderingdown tangents or exploring useless options. Financialplanners must be able to provide the kind of focus many non-financial people lack.5. Individualization: Every persons financial situation isunique, and a financial planner has to tailor solutions toindividuals instead of taking a "one size fits all" approach. IITE 2011-12 CE Dept / Sem VII / PROJECT/08/CE/028 170001 12
  12. 12. OBJECTIVES Focusing on advisory services to individuals. Meeting a clients life goals through proper management of their finances. Helping a person make advanced provision for financial needs of the future. To ensure that the right amount of money is available in the right hands at the right point in the future to achieve an individuals financial goals e.g. buying a home, saving for your childs education and marriage or planning for retirement. IITE 2011-12 CE Dept / Sem VII / PROJECT/08/CE/028 170001 13
  13. 13. PROCESS
  14. 14. PROCESSIITE 2011-12 CE Dept / Sem VII / PROJECT/08/CE/028 170001 15
  15. 15. STEP BY STEP:- Establishing and defining the client- planner relationship. Gathering client data, including goals. Analysing and evaluating the clients financial status. Developing and presenting financial planning recommendations and/or alternatives. Implementing the financial planning recommendations. Monitoring the financial planning recommendations IITE 2011-12 CE Dept / Sem VII / 16 PROJECT/08/CE/028 170001
  16. 16. STEP BY STEP:- Defining Client requirements:- We understand your financial requirements andexplain the various facets of financials services that areavailable. Thereafter, we identify areas where you requireassistance and areas that you can look after on your own.We then decide on the fee structure along with a tentativeduration for the professional relationship. IITE 2011-12 CE Dept / Sem VII / 17 PROJECT/08/CE/028 170001
  17. 17. STEP BY STEP:- Identifying clients goals and time horizon:- When a doctor is consulted, he usually begins bycompiling a complete medical history. Similarly a financialplanner requires information about your financial situation.Together with the client we define his or her personal &financial goals. We then work out and explain the variousfinancial responsibilities and the time frame for the results. IITE 2011-12 CE Dept / Sem VII / 18 PROJECT/08/CE/028 170001
  18. 18. STEP BY STEP:- Analyzing the clients current financial situation.:- Any financial situation has many aspects likeassets, income, loans, insurance, taxes, businessinterests, inheritances, wills etc. These have to be carefullyscrutinized by a trained professional who has a full andcomplete assessment of your current financial situation.This scrutiny is done to determine the actions required tomeet your goals. These could include analyzing your assets& liabilities, cash flows, incomes, savings, tax planning &budgeting, investments, retirement planning or tax strategyfor the family. IITE 2011-12 CE Dept / Sem VII / 19 PROJECT/08/CE/028 170001
  19. 19. STEP BY STEP:- Identify weaknesses and recommend improvements:- Once the data is analyzed, we identify areas thatneed particular attention. Based on this we make financialplanning recommendations to address your goals anddevise a strategy that will overcome weaknesses and lay astrong foundation for the financial management of youraffairs. After you have studied these recommendations wewill note your concerns to revise and finalize therecommendations. IITE 2011-12 CE Dept / Sem VII / 20 PROJECT/08/CE/028 170001
  20. 20. STEP BY STEP:- Implementation:- Any plan is worthless unless it is well implemented.If you desire, we will carry out the implementation of thefinalized plan for you or serve as your guide. This includesco-ordinating the whole process between you, youraccountant, solicitor, stockbroker, portfolio manager andreal estate agent. IITE 2011-12 CE Dept / Sem VII / PROJECT/08/CE/028 170001 21
  21. 21. STEP BY STEP:- Monitoring and Review:- Once the plan has been implemented, it requires aperiodic review. This is imperative to adjust the plan to thechanging situation in ones life, financial situation andincome levels. This monitoring can be done either by you oron your behalf by your financial planner. In the lattercase, a periodic report on your current situation will be sentto you for your information and directions formodification, if any. IITE 2011-12 CE Dept / Sem VII / PROJECT/08/CE/028 170001 22
  22. 22. FACTORS AFFECTING FINANCIAL PLAN IITE 2011-12 CE Dept / Sem VII / 23 PROJECT/08/CE/028 170001
  23. 23. THE CRUXThree Main following Factors and briefexplanation/analysis of these three statements. The Income Statement The Cash Flow Projection The Balance Sheet IITE 2011-12 CE Dept / Sem VII / 24 PROJECT/08/CE/028 170001
  24. 24. THE CRUXCurrent Asset:- Current Asset is an asset on the balance sheet which is expected to be sold or otherwise used up within one year. It usually Includes:  Cash  Bank Balance  Short Time Investments  Trade Debtors (Receivables)  Inventory IITE 2011-12 CE Dept / Sem VII / 25 PROJECT/08/CE/028 170001
  25. 25. THE CRUXCurrent Liabilities:- Considered liabilities of the business that are to be settled in cash within the financial year. It uaually includes:  Trade Creditors (Payables)  Bank overdraft  Short Term borrowings  Provision for Taxes  Provision for Dividends IITE 2011-12 CE Dept / Sem VII / 26 PROJECT/08/CE/028 170001
  26. 26. THE CRUXThe Income Statement:- Also called Profit and Loss Statement (P&L), is a financial statement that indicates how Revenue (Money Received from the sale of products and services before expenses are taken out) is transferred into net income. Show whether someone made or lost money during the period being reported. Help investors and creditors to determine the past performance of the enterprise as well as it can help to predict future performance. IITE 2011-12 CE Dept / Sem VII / 27 PROJECT/08/CE/028 170001
  27. 27. THE CRUXThe Balance Sheet:- Balance Sheet or Statement of Financial Position is a summary of a person’s or organization’s balances. Often Described as a snapshot of a company’s financial condition. IITE 2011-12 CE Dept / Sem VII / 28 PROJECT/08/CE/028 170001
  28. 28. THE CRUXThe Cash Flow Statement:- Financial Statement that shows a company’s flow of cash. Money coming into is called cash inflow, and money going out from the business is called cash outflow. The Statement shows how changes in balance sheet and income accounts affect cash and cash equivalents, and breaks the analysis down to Operating and Investing. IITE 2011-12 CE Dept / Sem VII / 29 PROJECT/08/CE/028 170001
  29. 29. DETAILD DESCRIPTION IITE 2011-12 CE Dept / Sem VII / 30 PROJECT/08/CE/028 170001
  30. 30. DETAILED DESCRIPTION Accumulus Financial Planner involves planning a budget, paying off debts, saving for a major life event and saving for retirement. Planning your finances is essential to having success in other areas such as relationships, health and your professional life. Being in control of your finances gives you a feeling of satisfaction and provides you with confidence because you will ultimately have more choices in your personal and professional life. IITE 2011-12 CE Dept / Sem VII / 31 PROJECT/08/CE/028 170001
  31. 31. DETAILED DESCRIPTION It pulls information from all of your checking, savings and loan accounts to help you keep track of what you owe. The program also helps you budget your income based on expenses and savings habits. It makes it easy to manage multiple accounts of different types, create and manage budgets and many other features without prior experience in accounting! IITE 2011-12 CE Dept / Sem VII / 32 PROJECT/08/CE/028 170001
  32. 32. DETAILED DESCRIPTION IITE 2011-12 CE Dept / Sem VII / 33 PROJECT/08/CE/028 170001
  33. 33. DETAILED DESCRIPTION On the whole,Accumulus Financial Planner keeps track of all a client owns, owes, earns, spends, receives in social security, and pays in taxes from the current year through retirement and beyond to life expectancy. With Accumulus Financial Planner, you can get your money to work for you and ultimately can ensure your prosperous future. IITE 2011-12 CE Dept / Sem VII / 34 PROJECT/08/CE/028 170001
  34. 34. SCOPE FOR EVERYBODY It is never too late to start finance planning for the future. Whether you are in your twenties, thirties, forties or older, setting goals and planning is important. For instance, in your twenties, you may be planning a budget from a new job and saving an emergency budget. In your thirties, you may be saving for a home. In your forties, you may be budgeting and saving for long-term retirement. In your fifties and sixties, perhaps your goals are to save for a lifelong wish such as a world vacation. At any age, planning and budgeting your finances in addition to being aware of how to achieve goals will be very beneficial. CE Dept / Sem VII / IITE 2011-12 35 PROJECT/08/CE/028 170001
  35. 35. Is It Upto Your Expectation?IITE 2011-12 CE Dept / Sem VII / PROJECT/08/CE/028 170001 36
  36. 36. ExpectationThe biggest problem with Financial Planning is that still“Financial Planning” is confused with “InvestmentPlanning” . It’s not meant to be answer followingQuestions.  What do you think Market will do tomorrow?  Which is the best Mutual Fund?  I have 5 lacs spare cash , how should I invest it so that I get maximum returns? IITE 2011-12 CE Dept / Sem VII / 37 PROJECT/08/CE/028 170001
  37. 37. IITE 2011-12 CE Dept / Sem VII / 38 PROJECT/08/CE/028 170001
  38. 38. What To Not Look Into Financial Planner Promise of Returns Magic (financial planner is not some magician who will fix all your problems and will make a financial plan which will try to achieve all you want) Instant Performance IITE 2011-12 CE Dept / Sem VII / 39 PROJECT/08/CE/028 170001
  39. 39. The Future IITE 2011-12 CE Dept / Sem VII / 40 PROJECT/08/CE/028 170001
  40. 40. The Future Comparing budget from month-to-month and year-to- year, which can be helpful when saving and investing down the road. Mobile alerts to help user track the effects of his spending by showing user how much money have will have left at the end of the month. Introducing widget tools that send alerts about your budget and accounts to your mobile phone as well as e-mail. Importing financial information in the form of an existing spreadsheet or other budget programs. Analysis in form of charts or any other graphical representation with credible tips. What-if Scenarios for more insight /in future IITE 2011-12 CE Dept Sem VII / 41 PROJECT/08/CE/028 170001
  41. 41. Conclusion Financial planners help people develop strategies for their finances. They help their clients set goals, deal with changes, and understand how various decisions will affect them. With the economy the way it is, lots of people need help. Determines whether or not your plan is feasible, and is a key component in determining whether or not your plan is going to be able to attract any investment in your business idea. IITE 2011-12 CE Dept / Sem VII / 42 PROJECT/08/CE/028 170001
  42. 42. Conclusion:Final WordsFinancial Planning is not aboutGetting great returns or beatingyour friends portfolio performanceor doing better than average , Itstotally a personal thing and totallyrelevent to you and your FinancialGoals . Its about having a pre-determined plan or strategy tomake use of whatever money youhave to achieve your Financialgoals in most efficient and hasslefree way . Getting Great Returns ordoing better than average is part ofFinancial Planning and not a verysignificant part of it . IITE 2011-12 CE Dept / Sem VII / 43 PROJECT/08/CE/028 170001
  43. 43. Questions & Comments… IITE 2011-12 CE Dept / Sem VII / 44 PROJECT/08/CE/028 170001
  44. 44. Beyond the sky Thank You IITE 2011-12 CE Dept / Sem VII / 45 PROJECT/08/CE/028 170001